The Thorco Lineage: Limitation Under The Hague-Visby Rules Where There Is Physical Damage And Economic Loss

• Published date: 07 September 2023
• Subject Matter: Transport, Marine/ Shipping
• Law Firm: Quadrant Chambers
• Author: John Russell and Benjamin Coffer

Trafigura PTE Ltd v TKK Shipping Ltd ("The Thorco Lineage") [2023] EWHC 26 (Comm)

Part of a cargo suffers some minor physical damage. But, an economic loss is suffered in respect of the whole of the cargo - perhaps a diminution in market value due to delay, a liability to pay salvors, or transhipment costs.

In The Limnos [2008] 2 Lloyd's Rep 166, Burton J held that under Article IV(5)(a) of the Hague Visby Rules the economic loss fell to be limited by reference to the weight of the physically damaged cargo, but that if there was no physical damage, the claim would be unlimited. This led to many anomalies, most notably that if there was minor physical damage the entire claim might be limited to a few dollars, but if there was no physical damage at all, the economic loss claim would be unlimited.

In The Thorco Lineage [2023] EWHC 26 (Comm))...